Retirement outlook brightens in S.J.

Confidence in retirement plans soared in the past year among residents of the Sacramento-Stockton-Modesto metropolitan area, largely due to the improved housing market and economy, a new survey finds.

Reed Fujii

Confidence in retirement plans soared in the past year among residents of the Sacramento-Stockton-Modesto metropolitan area, largely due to the improved housing market and economy, a new survey finds.

The Retirement Mindscape City Pulse index, which examines the 30 largest U.S. metro areas, says the Central Valley area ranks No. 7 overall, a huge jump from 2012, when the region ranked 18th.

The index is based on a survey commissioned by Ameriprise Financial Inc. and conducted online by Harris Interactive in June.

Christopher Olsen, an Ameriprise financial adviser in Lodi, said he wasn't surprised at what the survey found because of what he sees among his clients and his business.

"We're dealing with emotions here, aren't we? Part of this is how people feel," he said. "I think people in this area feel a lot better, because housing is up, the stock market is up and unemployment is improving, too."

In 2009, at the depth of the Great Recession, Olsen said he took on three new clients in the entire year.

This week alone, he said, is scheduled to meet with five potential clients.

"Lots and lots of people are wanting to come in and analyze their retirement," Olsen said. "This is a different dynamic. People are feeling a lot more upbeat."

» Fifty-four percent of respondents report adding to retirement savings, the most in four years and higher than the national average of 48 percent.

» Respondents with written financial plans hit 15 percent, more than in past years, and 28 percent also say they have a financial adviser, on par with the national average but the most in four years locally.

» More than one in five - 22 percent - say they feel very prepared financially for retirement - the highest in four years - and 35 percent say they feel very confident in their financial future, compared with just 26 percent nationally and 23 percent for the metro area last year.

» Sacramento-Stockton respondents are also more likely than the average American to feel positive about retirement, 72 percent vs. 67 percent.

» The region is also more comfortable with the Affordable Care Act. Just 55 percent of the region's residents say they are concerned about health care changes compared with 68 percent of U.S. residents overall.

Nationwide, researchers found that 42 percent of Americans report feeling on track for retirement - significantly more than the 37 percent in that category in 2012 as well as for any year since the index began in 2010.

The areas with the most confidence were San Francisco-Oakland-San Jose, in the No. 1 spot, surprisingly followed by Detroit in second place.

On the bottom of the index were Orlando, Fla., at No. 30 and Los Angeles, 29th.